Brazil’s sports betting bill is continuing to make progress in the senate now that members of the Economic Affairs Committee (CAE) have approved the report by Senator Angelo Coronel.
The senator proposed a number of changes to PL 3626/23 all of which were approved by members of the committee. While license fees remained unchanged at R$30 million the committee agreed to reduce the federal tax rate on GGR from 18%, halved the tax on player winnings and increased the duration of licenses to five years as opposed to three as had been initially outlined in the version of the bill as drafted in the lower house. In addition each licensed company will be able to run three online betting platforms according to the new proposals. Meanwhile a foreign company will need to have a Brazilian partner holding at least 20% of the company’s share capital in order to operate in Brazil.
The Senate Sports Commission (CEsp) and the Committee on Economic Affairs (CAE) had both been charged with examining the bill. The approval of the text in the CAE could well be one of the last stages of the bill in the senate. Earlier this month the CEsp voted in favour of the official report on Brazil’s sports betting bill. The report was filed by the bill’s rapporteur Senator Romário.
The reports differ in certain aspects. For example the CEsp kept the tax rate at 18% GGR and put in place advertising restrictions something that has been rejected by the CAE. Both committees agree though on extending the duration of licenses to five years from three and both agree on allowing one licence holder to run three online betting platforms.
According to local press Senator Jorge Kajuru will be the rapporteur of the bill in the plenary. He will need to bring together the suggestions approved by both commissions and put a revised version of the bill forward for a vote. It will then need to go back to the Chamber of Deputies. They will have the final say on the matter.